Government increased Borrowing by 4% in Two Months

The Mint PK

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Economy

Government increased Borrowing by 4% in Two Months

The government’s domestic debt increased by 3.68% in the first two months of this fiscal year while foreign loans or borrowings reduced by 2.8% during the period.

The State Bank of Pakistan on Monday, released the data which was the clear indication that the government’s domestic debt grew by Rs. 764 billion to Rs21.495 trillion in August, up from Rs20.731 trillion as of June end.

Similarly, the foreign debt reduced by Rs. 310 billion to Rs10.745 trillion in August 2019, as compared to Rs11.055 trillion by June.

The State Bank of Pakistan report also shows that the central government’s collective debts (both domestic plus exterior) increased by a cumulative Rs454 billion to Rs32.24 trillion.

All these explanations also suggest that the government’s action against corruption additionally affected the prize bonds markets as measures to clampdown on black money reduced prize bonds debt by Rs140.8 billion to Rs753.1 billion in August, from Rs893.9 billion.

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